Singapore investigates Hodlnaut

On suspicion of "possible misrepresentation and fraud," Singapore's Commercial Crime Investigation Unit has opened an inquiry into the crypto lender Hodlnaut.

On suspicion of "possible misrepresentation and fraud," Singapore's Commercial Crime Investigation Unit has opened an inquiry into the distressed crypto lender Hodlnaut.

On Wednesday, November 23, the Singapore Police's Economic Crime Surveillance unit, the Commercial Affairs Department (CAD), opened an inquiry into Hodlnaut, the crypto lender in distress.

Between August and November 2022, police received multiple reports that Hodlnaut and/or its directors had given false statements in connection with a certain digital token. The CAD document does not clearly specify which cryptocurrency it refers to.

There is, however, a belief that it may have involved Terra's now-defunct stablecoin USTC. The Terra ecosystem collapse sent several crypto lenders to bankruptcy and has led to Hodlnaut's current liquidity issues.

"Based on these police reports, the CAD is investigating Hodlnaut and its directors for potential fraud offenses," the agency's document states. In August, the company froze withdrawals, deposits, and token swaps, and laid off 80 percent of its staff.